Self-Employed Borrowers

For many self-employed individuals, homeownership is a significant financial goal. However, securing a mortgage when you’re self-employed comes with unique challenges. In this blog, we’ll delve into the world of mortgages for self-employed borrowers, exploring the obstacles they may encounter and the solutions available to make their homeownership dreams a reality.

Challenges for Self-Employed Borrowers

1. Income Documentation

Traditional employees can easily prove their income with pay stubs and tax returns. Self-employed borrowers, on the other hand, may find it challenging to provide consistent, verifiable income documentation.

2. Fluctuating Income

Self-employed income can be variable, making it challenging for lenders to predict a borrower’s ability to make mortgage payments.

3. Limited History

Lenders often prefer a stable employment history. Self-employed individuals might have a shorter, less predictable work history.

4. Higher Down Payments

To compensate for the perceived higher risk, self-employed borrowers may be required to make more substantial down payments.

Solutions for Self-Employed Borrowers

1. Stated Income Programs

Some lenders offer stated income or “bank statement” programs that allow self-employed borrowers to state their income based on their bank statements rather than traditional documentation.

2. Improved Record-Keeping

Self-employed borrowers can bolster their mortgage applications by maintaining meticulous records, including business financial statements, tax returns, and profit and loss statements.

3. Strong Credit Profile

A strong credit history can offset some of the challenges self-employed borrowers face. Timely bill payments and responsible credit management are crucial.

4. Work with Mortgage Specialists

Working with mortgage specialists experienced in handling self-employed borrowers’ unique situations can be invaluable. These professionals understand the documentation challenges and can guide borrowers through the process.

Eligibility for These Borrowers

1. Income Verification

Lenders will typically require two years of personal or business tax returns, as well as bank statements to verify income.

2. Credit History

A solid credit history, often with a minimum credit score, is essential to demonstrate financial responsibility.

3. Down Payment

Self-employed borrowers may be required to make a larger down payment, often around 20% or more.

4. Business Stability

Demonstrating the stability and profitability of the self-employed business can help reassure lenders.


Self-employed borrowers face distinct challenges when it comes to securing a mortgage, but with careful planning, sound financial practices, and the guidance of experienced professionals, homeownership is entirely attainable. While it may require a bit more effort, the satisfaction of owning a home is well worth it. As you embark on your homeownership journey, remember to consult with a mortgage specialist to explore the best solutions tailored to your unique situation. With the right preparation and a supportive team, self-employed individuals can open the doors to their dream homes.


Contact Us

Contact Capital Mortgages today to learn more about refinancing and how we can help you save money on your mortgage. Our team of experienced mortgage professionals is here to help you navigate the process and to find the mortgage solution that best meets your needs. Whether you are looking to lower your monthly payments, pay off your mortgage faster, or access equity in your home, we can help you explore your options and find the best mortgage solution for your unique situation. So, if you are thinking about refinancing your mortgage in Canada, don’t hesitate to contact us today!

We here at Capital Mortgages in Ottawa look forward to assisting you with all your Ottawa mortgage needs. Contact us today by calling us at: 613-228-3888 or email us direct at:

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